Supreme Court Directs Builders to Refund Customers at Any Cost

New Delhi: Supreme Court on Tuesday ruled that consumers, who invested their hard-earned money for booking flats are not supposed to suffer because of the bad financial condition of a builder and directed the realtor to refund advances at any cost.

While giving the ruling pertaining to realtor Supertech, Supreme Court has said customers shouldn’t be suffered just because of bleak financial position of builders. Supreme Court has ordered Supertech to refund money to home buyers who invested in its Emerald Towers project in Noida.

A Bench comprising Justice Dipak Mishra and Justice AK Goel told Supertech: “We are not concerned whether you sink or die. You will have to pay back the money to home buyers. We are least bothered about your financial status,” while directing the builder to refund the money within four weeks to 17 homebuyers, who invested in Emerald Towers. And this was assured by the company earlier.

A Bench comprising Justice Dipak Mishra and Justice AK Goel told Supertech: “We are not concerned whether you sink or die. You will have to pay back the money to home buyers. We are least bothered about your financial status,” while directing the builder to refund the money within four weeks to 17 homebuyers, who invested in Emerald Towers. And this was assured by the company earlier.

It also asked the company to furnish a chart of payments made to the 17 buyers at the next date of hearing. Justice Misra and Justice Goel held that the company could not take the excuse of being in bad financial condition to deny the rights of flat buyers who wanted their money back after the project got into controversy for allegedly violating the law.

The court also asked the National Buildings Construction Corporation (NBCC) to inspect the site and find out whether the buildings had been built in the green zone in violation of norms. Supertech is the third realty developer and construction company recently to get refund order from Supreme Court.

Unitech and Parsvnath told to refund money to their consumers. Though these companies had expressed their inability to refund money citing reasons of financial crisis. However, the apex court rejected the plea and directed the realty developers to pay back the money to consumers.

The court also asked the National Buildings Construction Corporation (NBCC) to inspect the site and find out whether the buildings had been built in the green zone in violation of norms. Supertech is the third realty developer and construction company recently to get refund order from Supreme Court.

Earlier in 2014, Allahabad High Court ordered demolition of the two 40-storey residential twin towers - Apex and Ceyane - in Noida and directed Supertech to reimburse the flat buyers with 14 percent interest in three months. The twin towers have 857 apartments, of which about 600 flats had been sold.

Senior advocate Rajeev Dhawan on behalf of Supertech informed the apex court that the money had been invested by the company in construction of the building. Only few buyers want to get back their money. Dhawan further said: “Over 600 people who approached the company after the HC order, 274 had sought alternative arrangements. The company is also refunding money to those who approached it in time for refund.”